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6 - Consideration of a recommendation for the Preliminary 2009 OSMP Departmental Management and Capital Improvement Program (CIP) ...ry Fund Capital Improvement Program Budget CITY OF BOULDER OPEN SPACE BOARD OF TRUSTEES MEETING DATE: July 9, 2008 AGENDA TITLE: Consideration of recommendations for the Preliminary 2009 Open Space and Mountain Parks Departmental Management and Capital Improvement Program Budgets and a portion of the Lottery Fund Capital Improvement Program Budget. PRESENTERS: Open Space and Mountain Parks Michael D. Patton, Director Delani Wheeler, Division Manager, Central Services Mikc Orosel, Financial Service Manager, Central Services FISCAL IMPACT: Sufficient funds are available in the Open Space Fund to cover the proposed 2009 budget, as summarized on page 2 of this memorandum and in the Fund Financial. PURPOSE This is a request for the Open Space Board of Trustees (OSBT) to: Approve, and recommend that City Council approve, the appropriation for 2009 of $26,036,018 from the Open Space (OS) Fund and the General Fund to cover the 2009 Open Space and Mountain Parks (OSMP) Department expenditures and transfers as outlined in this memorandum (see page 2) and related attachments; and, Approve, and recommend that Planning Board and City Council approve $4,150,000 in 2009 and annually thereafter from the Open Space Fund CIP 2009 through 2014 budget as outlined in this memorandum and related attachments; and make recommendations concerning allocation of a portion of the city's Lottery Fund Capital Improvement Program Budget. AGENDA ITEM# 6 Page 1 2009 BUDGET OVERVIEW {Prepared 07-01-08} Proposed 2009 SOURCES OF FUNDS Budget °lo Net Sales Tax Income: $23,284,228 90.26% Investment Income: $325,060 1.26% Lease & Misc. Income: $485,909 1.88% Subtotal - OS Fund Sources of Funds: $24,095,137 93.40% General Fund Appropriation for OSMP: $1,088,898 4.22% General Fund Appropriation for RE Svcs: $138,401 0.54% Lottery Fund CIP Appropriation for OSMP: $475,000 1.84% Subtotal -Non-OS Fund Sources of Funds: $1,702,299 6.60% Total Sources of OSMP Funds: $25,797,436 100.00% USES OF FUNDS Personnel Expenditures: $7,842,442 29.38% Non-Personnel Expenditures: $2.564,218 9.61 Subtotal -Management Budget: $10,406,660 38.98% Administrative Transfer for Health Benefits: $45,946 0.17°l0 Cost Allocation Transfer to General Fund: $885,465 3.32% Subtotal Operating Expenditures: $11,338,071 42.47% Open Space Fund CIP: $4,150,000 15.55% Lottery Fund CIP: $475,x00 1.78% Debt Service Payments: $10,732,294 40.20% Subtotal CIP & Debt Pmt Expenditures: $15,357,294 57.53% Total OSMP Uses of Funds (1} $26,695,365 100.00% (1.} Includes Transfer to the Fire Dept Budget of : $77,866 Includes GF Funding for RE Services of: $138,401 AGENDA ITEM# 6 Page 2 EXECUTIVE SL?l~In~ZARY: Based on current Budget Office 2008 sales tax projected growth rate of 3.88 percent and adopted expenditure projections, the recommended 2009 budget maintains the financial sustainability of the OS Fund. "Sales tax revenues", actually the total combined revenues from sales and use tax collected by the city, make up approximately 90 percent of the department's revenue. The Open Space Fund sales tax base of 0.88 of a cent per dollar is made up of three components: 0.33 of a cent per dollar that will sunset at the end of 2018, 0.15 of a cent per dollar that will sunset at the end of 2019, and 0.40 of a cent per dollar that has no sunset and is projected to provide the base for ongoing expenditures in 2020 and thereafter. The 2009 sales tax revenue is projected to be $23,284,228. In 2008, the sales tax revenue is projected to be $22,415,123. As of this date, sales tax revenues for the year continue to be on par with projections. The signal from the Budget Office is one of cautious optimism while remaining conservative in forecasting. The proposed 2009 budget reflects Open Space Board of Trustees' (OSBT) goals of maintaining both stewardship of the open space lands and preserving as many additional acres as possible, within the financial sustainability of the OS Fund. The attached Projected Open Space Fund Financial for 2007-2014 reflects this sustainability. This Fund Financial spreadsheet models proposed expenditures for 2009 and thereafter which have not yet been approved by City Council. The proposed 2009 Capital Improvement Plan (CIP) budget for the Open Space and Mountain Parks Department continues funding for the Acquisition CIP at $3,400,000, the Mineral Rights CIP at $100,000 and restores the Water Rights CIP to $200,000. For 2007-2008, $170,000 of the Water Rights CIP had been reallocated each year to operations. The Visitor Infrastructure CIP for 2009 is continued at $450,000 annually in order to implement the Visitor I~•Iaster Plan (VMP). These uses of funds will be sustainable under the current Budget Office revenue projection of 3.88 percent for 2009. The Lottery Fund CIP funding for capital projects within the mountain backdrop is scheduled to resume in 2009. COMMUNITY SUSTAINABILITY ASSESSMENTS AND IMPACTS: • Environmental: Open Space and Mountain Parks is a significant community- based program that is recognized world-wide as a leader in preservation of open space lands contributing to the environmental sustainability goal of the City Council. • Economic: The Open Space and Mountain Parks program contributes to council's economic sustainability goal, because it provides the physical context for the diverse and vibrant economic system that supports services for residents. The land system and the quality of life it represents attract visitors and help businesses to recruit and retain quality employees. • Social: The Open Space land system is equally accessible to all members of the community and therefore helps support council's community sustainability goal because all residents "who live in Boulder can feel a part of and thrive in" this aspect of their community. AGENDA ITEM# 6 Page 3 OTHER IMPACTS: • Fiscal: Sufficient funds are available in the Open Space Fund to cover the proposed 2009 Operational and Capital Improvement Program budgets as summarized in this memorandum and in the attached Open Space Fund Financial 2007-2014. (See Attachment A.) • Staff Time: The budget is the financial representation of the departmental work plan. Preparation and management of the budget are part of the normal work plan. :4N:4LYSIS: btcrease of Services and Operating Expenditures Starting in 2001 OSMP and the city as a «-hole experienced a multi-year decline in sales tax revenue collections that eventually approached a loss of nearly 20 percent in annual revenues across the board. OSMP made a number of adjustments to both its operations and acquisitions budgets to maintain fiscal sustainability. Starting in 2004 OSMP was able to begin a series of budget increases because of two factors: approval by the voters in November 2003 of the 0.15 cent per dollar Open Space sales and use tax through 2019, and a gradual increase in the rate of sales tax growth for the city as a whole. Since adoption of the Visitor Master Plan in April 2005, a majority of the increases to the operations budget have been directed toward VMP implementation. For 2009 staff is requesting the addition of $48,621 in ongoing funds for the reorganization and $25,000 in one-time funds for a professional analysis of space needs. It is not recommending any additional positions for 2009. Other increases in the requested 2009 budget appropriation over 2008 are solely due to projected growth in salaries and benefits for personnel (PE) and non-personnel (NPE) expenses. Changes in Staffing Levels For 2009 staff is recommending a total of 91 FTEs (full-time equivalents). Funds are included to achieve the reorganization of the department introduced by the director earlier this year. The reorganization will not change the total number of FTEs. The current 2008 standard FTE count, including affixed-term ranger authorized through 2008, is 92 FTEs. If this budget request is approved, total standard FTEs in 2009 will be 91 FTEs. Staff will also utilize available funding for seasonal and temporary workers in order to address service needs across the department. General Fund Transfer In 2009 the General Fund transfer for lUlountain Parks is modeled to be $1,088,898, up fiom $1,057,324 in 2008. This transfer was $1,241,722 in 2001, and was reduced in a multi-year cost cutting program (2002-2004) instituted by the city manager's office in response to reductions of General Fund revenues. The transfer is now projected to grow at a modest annual rate based on factors for wage and benefit increases. Review of the Open Space Board Contin~ency Reserve Policy Approximately 90 percent of the OS Fund revenue is generated by sales tax, and the program is limited in its ability to raise additional revenues from other tax levies or fees. AGENDA ITEM# 6 Page 4 Because of this situation, the OSBT has recommended for cashflow planning purposes that a substantial contingency reserve be maintained. Each year the OSBT, during the budget process, reviews the reserve amount taking into consideration national, regional and local economic conditions, debt service needs, proposed purchases, the program's projected management costs, and projected sales tax revenue growth rates. Increases to the reserve have generally been recommended as the fund increases the amount of outstanding debt, as when new bonds are issued. This was not a factor in the most recent bond issue. Each year the actual level of debt service varies due to payoff of old notes and bonds and issuance of new notes and bonds. The debt service payment schedule has been in the range of $9.5 million to $10 million annually since 2001. In 2007, these payments were increased to approximately $10.9 million because of the $20,115,000 in bonds issued in May of 2006. Total debt service in 2009 is anticipated to be $10,732,294. The staff recommends maintenance of the contingency reserve in the amount of $6,491,270 for 2009. This includes $5,475,000 contingency and open space ret%enue bond reserves, $400,000 reserves for potential property and casualty liability, $490,000 reserves to fulfill TABOR requirements for accrued benefits and $126,270 for the anticipated 27~' pay period in 2013. Cost Allocation Cost allocation for OSMP in 2009 is modeled to be $885,465. This is up from the $783,571 scheduled for 2008 and higher than the $793,249 that was assessed in both 2003 and 2004. Based on the department's utilization of services fiom other city departments in 2005 and 2006, the cost allocation was initially calculated to increase much higher in 2009; however, it was determined that this increase would be spread over 2009 and 2010. After 2010 the cost allocation is modeled to continue to increase at a small percentage each year reflecting anticipated increases in salaries and non-personnel expenses. The annual cost allocation planning process utilizes amulti-departmental staff team working with a government financial consulting firm. While the system is complex, it seems reasonable and fair in so far as the methodology for the allocation of costs for services is concerned. While the department might wish it could have different levels or types of service in certain areas, the costs for services are consistently reported and allocated throughout the city organization. Staff will continue to monitor trends in the city-wide cost allocation process. Capital Improvement Plan In 2009 the CIP for the Open Space Fund is recommended to include $3,400,000 for land acquisition, $200,000 for water rights acquisition and $100,000 for mineral rights acquisition plus $450,000 for visitor infrastructure. Additionally the department anticipates restoration of its access to a portion of the Lottery Fund in 2009. AGENDA ITEM# 6 Page 5 Within the Land Acquisition program properties acquired since 2404, including lands in Jefferson County, have been purchased under the guidance of the Accelerated Acquisition Program and the Acquisition and Management Plan 2404-2406 as it has been extended through 2011. Additionally, 6,555 acres were acquired via the 2001 consolidation of the Mountain Parks Division of the Parks and Recreation Department with the Open Space/Real Estate Department. Staff anticipates acquiring an additional 5,815 acres under the 2046-2411 Acquisitions and Management Plan subject to availability of funds. Under this plan, additional open space will be acquired within the Boulder Valley Comprehensive Plan (BVCP) Area III, the Mountain Backdrop, the Northern Tier/Boulder County Partnerships area, and in the Jefferson County infill area, as approved by the OSBT and City Council. Funding is provided from the projected restricted open space sales tax revenues and includes funding for survey, appraisal and professional fees and related acquisition and immediate management costs. The Water Rights Acquisition program provides funding to purchase additional water rights from private owners or others for use on Open Space for agricultural and environmental purposes, as water becomes available in the Coal Creek, South Boulder, Boulder and Lefthand Creek watersheds. Funds will also be used for professional, legal and engineering fees, related analysis and other costs as may be necessary to manage and protect the water rights portfolio. The Open Space and Mountain Parks staff will continue to work with other city departments to assist in enhancing in-stream flow where possible. The Minerals Rights Acquisition program provides funding to purchase underlying mineral interests from private owners, as they become available on the real estate market. Many of these interests in minerals, gas, oil and aggregates were severed from the properties before purchase by the city and could cause future management issues. Funds are also used for research, mapping and analysis of potential acquisitions. Annual funding for the Visitor Infrastructure program was increased by $200,404 to the current $450,000 starting in 2006 to meet the work plan identified in the OSMP Visitor Master Plan approved by council in April 2005. This program provides funding for capital maintenance of existing trails and trailheads; construction of new trails and trailheads and other facilities that improve the visitor experience, such as safe road crossings; and to restore areas where visitor impacts are high. The Historic Structures and Trails Stabilization and Restoration program uses Lottery funds within the mountain backdrop to identify, stabilize and renovate significant historic structures and trails and to protect other sites and artifacts identified in cultural resource inventories. These funds were reallocated and transferred to Parks and Recreation in 2447 and 2408. After 2008 a restoration these funds would return the VMP infiastructure implementation to the Vision Plan level. Lottery Fund Allocation The Lottery Fund distribution starting with the 2002 annual CIP was as follows: Tributary Greenways $150,000; payment of BMPA debt service related to prior parks AGENDA ITEM# 6 Page 6 purchases in Area III with annual costs ranging from $344,444 to $167,444; $144,444 toward continued Mountain Parks capital maintenance and facility rehabilitation programs; and the remaining annual net proceeds distributed equally on a 54/54 basis to both the Parks and Open Space Funds. Both the OSBT and Parks and Recreation Advisory Board (PRAB) approved this distribution of funds May of 2001. The debt service on the Area III Park site is being paid off in 2048 and these funds will be available for other purposes. The Lottery Fund will continue to be collected and distributed across the state through 2024, and has been a good source to provide funding for infrastructure needs in Boulder's mountain backdrop area. A majority of these needs are related to the age of the Mountain Parks infrastructure which largely dates from the early 20th century, together with the years of accrued deferred maintenance that were a part of the Mountain Parks system at the time of the OSMP consolidation starting on January 1, 2441. Staff has a list of CIP projects for the mountain backdrop area, which will provide lasting visible public benefit and be "plaque-able", in the sense of the 2001 consideration and recommendation of this issue by the two boards. A majority of these capital maintenance and improvement projects are also components of the VMP implementation plan. The Parks and Recreation Department, together with other city General Fund programs, has not fully recovered from the economic decline that started in 2441 and resulted in a loss of nearly 20 percent of annual city-wide sales and use tax collections. The General Fund obtains approximately 45 percent of its revenue from sales and use tax and the Parks and Recreation Department depends on both the general fund and specific sales and use tax revenues for a majority of its funding. Because of the decline in revenues, Parks and Recreation made a number of programmatic reductions. In response to this situation, on May 10, 2006, the OSBT considered a proposed two-year reallocation of the share of lottery funds it had been receiving since 2002 to Parks and Recreation for atwo-year period and recommended that "the Open Space Board of Trustees agrees with the reallocation of lottery funds for two years and the agreement being that after 2448 the current approved allocation of lottery funds «~ould be reestablished which will return the Visitor Master Plan infrastructure implementation to the Vision Plan level and that there be a clear commitment on the part of the city that this will occur in two years." The city manager followed up on this action with a memorandum, which stated in part that it was his "intent that after 2008, the current approved allocation of the lottery funds will be reestablished, which will return the VMP infrastructure implementation to the Vision Plan level." For the past several years the city's Lottery Fund has been administered by the Parks and Recreation Department. Because the Lottery Fund provides funding for multiple departments, it is being administered by the city's Office of Budget and Finance starting in 2048. For 2009, the city manager is recommending aone-time approach for the distribution of lottery funds. $150,000 will be allocated to Tributary Cneenways and the remainder will be split 54/54 between Open Space ($525,444) and Parks & Recreation ($525,444). AGENDA ITEM# 6 Page 7 This is in excess of the $475,404 that was originally modeled for this item in 2049 and as illustrated on the July 1 spreadsheet on page 2 of this memorandum. Decisions on future Lottery Fund distributions for the three departmentslfunctions will be comprehensively evaluated for the 2010 budget based on the Blue Ribbon Commission's recommendations as well as the impacts of any potential 2008 ballot measure items. This analysis cannot be completed at this time because council is still considering «~hether any revenue ballot measure items will be placed on the November ballot. Financing Sufficient funds are available in the Open Space Fund to appropriate the 2009 budget and CIP requests. Open Space bonds totaling $20,115,400 were issued in May 2006 under the general revenue bond authorization approved by voters in November 1997. Additional series of bonds are projected to be issued in future years under this and a previous open space revenue bond authorization approved in 1993. Currently staff is working with the director of Finance and the city's bond and financial advisors to evaluate the potential to issue additional bonds later this year in order to address the funding needs for upcoming acquisitions. Dates and amounts will depend on a variety of factors, including projected expenditures and sales tax collections as well as tinning and funding needs for acquisitions. Relationship to Operating Budget The Open Space and Mountain Parks VMP was adopted in April 2005 and outlines a significant capital expenditure plan in order to address identified needs within the six- year CIP schedule. This, together with the Open Space Long-Range Management Policies adopted in 1995, sets the management direction for the OSMP Department. These policy level plans, along with area and resource management plans, provide the framework to prioritize and budget specific resource management actions to further the OSMP Department mission. In late 2007 and early 2008, in an effort to better support implementation of these plans, the department developed a Strategic Operating Plan including 8 Legacy Programs and 8 Organizational Dynamics Issues as well as a Project Management Model. In April 2448 the department initiated a reorganization plan. The 2409 budget is designed to support these initiatives. In 2007 and 2008 Open Space and Mountain Parks reallocated $170,000 per year from the Water Rights Acquisition CIP to its operating budget in order to address immediate operational needs. These funds are planned to be restored to the CIP in 2049 and thereafter. Payments for bonds, Boulder Municipal Property Authority (B1~~IPA) instruments and projected operational expenses are structured to fit within the funding base provided by the 0.40 cent Open Space sales tax that will remain after the projected expirations of the 0.33 and 0.15 cent Open Space sales taxes in 2018 and 2019. PUBLIC FEEDBACK: This item is being heard at this public meeting advertised in the Dcrily Cat~nera on July 6, 2448. In July the following public meetings are planned concerning the city's Capital Improvement Program: Wednesday July 9, Council Field Trip -Urban Focus; Thursday AGENDA ITEM# 6 Page 8 July 10, Planning Board meeting to review and approve CIP; and Tuesday July 29, City Council Study Session on Council Initiatives and CIP. V4~ith regards to the 2009 operating budget, a study session with the council is planned for August 26. First and second readings of the 2009 budget ordinances are scheduled to be October 21 and November 12 respectively. STAFF RECOA~111~IENDATION The staff recommends and requests that the Open Space Board of Trustees make the following motions: Approve, and recommend that City Council approve, the appropriation in 2009 of $26,036,018 from the Open Space Fund and the General Fund to cover the 2009 Open Space and Mountain Parks Department expenditures and transfers as outlined in this memorandum and related attachments. Furthermore, staff recommends and requests that the Open Space Board of Trustees approve and recommend that Planning Board and City Council approve $4,150,000 annually from the Open Space Fund CIP 2009 through 2014 budget as outlined in this memorandum and related attachments; and make recommendations concerning a portion of the city's Lottery Fund CIP. Submitted by: Michael D. Patton, Director Delani Wheeler, Division IVlanager Mike Orosel, Supervisor ATTACHMENTS: A. Open Space Fund Financia12007 through 2014 B. Summaries of Open Space Fund 2009-14 Capital Improvements Program (CIP) AGENDA ITEM# 6 Page 9 2007-2014 Fund Financial Open Space Fund 2007 2008 2009 2010 2011 2012 2013 2014 ACTUAL REVISED RECOMMENDED PROJECTED PROJECTED PROJECTED PROJECTED PROJECTED UNAPPROPRIATED FUND BALANCE Beginning of Year 529,94A,436 513,123,522 59,691,472 58,839,489 59,112,232 59,101,729 512,734,343 515,979,349 SOURCES OF FUNDS Net Sales Tax Revenue 521,757,790 522,415,123 523,284,228 52A,11A,713 524,994,935 525,86fi,318 526,758,223 527,681,944 Investment Income 51,157,093 5325,000 5325,000 5325,000 5325,000 5325,000 5325,000 5325,000 Lease 8 Miscl Revenue 5605,922 SA85,909 5485,909 5485,909 5485,909 5485,909 5485,969 5485,909 Salo of Property 5708,439 Bond Refunding 512,415,777 Arbitrage Transfer $A1,877 General Fund Transfer 51,012,481 51,057,324 51,088,898 51,099,787 $1,110,785 51,121,893 51,133,112 51,144,443 Grants 542,118 5167,159 50 SO 50 50 SO SO Total Annual Sources of Funds 537,7A1,A97 524,450,515 525,184,035 S2fi,025,4D9 52fi,915,529 527,799,120 528,702,244 529,637,296 USES OF FUNDS General Operating Expenditures $9,006,526 59,868,564 510,072,712 59,720,981 59,915,401 510,010,607 510,210,820 510,415,036 Finance Office Sales Tax System 532,000 2008 Operating Carryover 53,000 ~ Grant Expenditures 5167,159 y 2008 ATB $fi8,400 ~ 2009 Action Plan 573,621 549,593 550,585 551,597 552,629 553,682 BudgelAdjustmenl 5121,926 5126,803 5131,875 5137,150 5142,636 5148,342 Administraiive Transfer 5776,448 5783,571 5885,465 5987,358 51,007,105 51,027,247 51,047,792 51,068,748 Total Operating Uses of Funds 59,782,974 510,922,694 511,153,724 510,884,735 511,104,967 511,226,602 511,A53,877 511,685,807 z y CAPITAL IMPROVEMENTS PROGRAM a Continuation Projects 51,059,595 53,980,000 54,150,000 54,150,000 54,150,000 54,150,000 54,150,000 54,150,000 Carryover from 2006 519,608,471 Carryover from 2007 51,991,566 Total Capital Improvements Program 520,658,066 55,971,566 54,150,000 54,150,000 54,150,000 54,150,000 54,150,000 5A,150,000 DEBT SERVICE USES OF FUNDS Debt Service - BMPA 53,364,981 52,739,715 52,541,112 52,539,709 54,620,353 51,748,545 51,611,2A5 51,515,608 Debt Service -Bonds 8 Notes 58,393,760 58,210,137 513,191,182 58,178,221 57,051,812 57,OA1,359 57,242,115 55,277,561 2008 Debt Carryover 538,453 x° Bond Refunding 512,310,754 G7 Arbitrage 5A1,877 m Total Debt Service Uses of Funds 524,111,371 510,988,305 510,732,294 510,717,930 511,672,165 58,789,905 58,853,360 56,793,169 =t ~ TOTAL USES OF FUNDS 55A,562,A11 527,882,565 526,036,018 525,752,666 525,927,132 524,166,507 524,457,237 522,628,976 FUND BALANCE -END OF YEAR 513,123,522 59,691,472 58,839,489 $9,112,232 59,101,729 512,734,343 516,979,349 523,987,668 OSBT CONTINGENCY RESERVE 55,475,000 55,475,000 55,475,000 55,475,000 55,475,000 55,475,000 55,475,000 55,475,000 REVENUE BOND RESERVE SO 50 50 50 50 50 50 50 PAY PERIOD 27 RESERVE 528,400 568,270 5126,270 $184,270 5242,270 5300,270 5358,270 5416,270 r7~ SICKNAC/APP. BONUS LIABILITY RESERVE 5490,000 5490,000 5490,000 5490,000 5490,000 5490,000 5490,000 5490,000 PROPERTY AND CASUALTY RESERVE 5400,000 5400,000 5400,000 5400,000 $400,000 $400,000 $400,006 $400,000 ~ SUBTOTAL -RESERVES 56,393,400 56,433,270 56,491,270 56,549,270 56,607,270 S6,fi65,27D 56,723,270 5fi,781,270 ' UNRESTRICTED FUND BALANCE 56,730,122 $3,258,202 52,348,219 $2,562,962 $2,A94,459 $6,069,073 510,256,079 $17,200,398 20Uy-2014 Capital Improvements Progranrl Open Space Fund o6-.n~?r-os 2009 2010 2011 2012 2013 2014 Total Recommended Projected Projected Projected Projected Projected New Construction -Not Growth Related OSMP Narth Trai[ Study Area 2D,000 70,DD0 40,D00 0 0 0 130,000 OSMP South Trail 5tt~dy Arca 262,000 150,DD0 0 50,000 p 0 462,000 OSMP West Trail Study Area 20,OOD 60,000 42,000 D D 0 122,000 OSMP East Trail Study Arca 0 0 50,000 70,OOD 190,000 40,000 35D,000 Total: 302,000 280,000 132,000 120,000 190,000 40,000 1,064,000 On-Going Projects Acquisition Program 3,400,000 3,400,OOD 3,400,000 3,400,000 3,4D0,000 3,400,000 2 ~ 0,400,000 "i Mineral Rights Acquisition IOO,ODO IOO,OOD COO,OOD 10D,000 100,000 100,OD0 600,000 Y Visitor Infrasuucture - 5ystcm Wide ]48,D00 170,D00 318,000 330,000 260,000 410,OD0 1,636,000 ttSSrrll Watcr Rights Acquisition 200,D00 200,000 20D,000 200,OOD 200,ODD 2DO,OOD 1,200,000 z Total: 3,848,000 3,870,000 4,018,000 4,030,000 3,960,000 4,110,000 23,836,000 ~ Total For Open Space Fund 4,150,000 4,150,000 4,150,000 4,150,000 4,150,000 4,150,000 24,900,000 3 f ~1 MEMORANDUM TO: Open Space Board of Trustees FROM: Michael D. Patton, Director, Open Space and Mountain Parks Delani Wheeler, Division Manager DATE: July 03, 2008 RE: Background Information on Reallocation of Lottery Funds in 2007-2008 At its June 19, 2008, Annual Retreat the Board requested copies of its discussions regarding the reallocation of Lottery Funds that had been allocated to Open Space and Mountain Parks to the Parks and Recreation Department in 2007 and 2008. Staff has attached copies of minutes from three board meetings where this issue was discussed. • On May 10, 2006 (See Attachment A pages 1 through 3) the idea of reallocating the funds for atwo-year period was introduced and voted on. The Board recommended in part "the reallocation of lottery funds for two years and the agreement being that after 2008 the current approved allocation of lottery funds would be reestablished which will return the ~~'isitor Master Plan infrastructure implementation to the vision plan level and that there be a clear commitment on the part of the city that this will occur in two years." • On July 12, 2006 (See Attachment B pages 4 through 6) the Board discussed this during its public hearing on the Capital Improvement Projects budgets (CIP) and recommended the two-year reallocation as part of the City's 2007 CIP budget process. • On June 27, 2007 (See Attachment C pages 3 through the Board again recommended the two-year reallocation as part of the 2008 CIP budget process. The Board will be asked to make recommendations on the 2009 Budget and CIP requests at its July 9, 2008 meeting. Attachments: A- OSBT Minutes of May 10, 2006 B- OSBT Minutes of July 12, 2006 C- OSBT Minutes of June 27, 2007 C:1Documents and SettingslmadrdllDesktoplB&C10SBT1Lottery Background 070908.doc Page 1 Approved 6/14/2©1/6. OPEN SPACE BOARD OF TRUSTEES Minutes May 10, 2006 BOARD MEMBERS PRESENT Ken Dunn Bill Briggs Kay Tauscher Bruce Bland Allyn Feinberg STAFF PRESENT Mike Patton Dean Paschall Ariel Calonne Jim Reeder Delani Wheeler Dave Kuntz Ann Gaodhart Cecil Fenio Ronda Romero John D'Amico Mike Orosel Mark Gershman CALL TO ORDER The meeting was called to order at 6:15 p.m. AGENDA ITEM 1-Approval of 1ltinutes Bruce Bland moved that the minutes of April 17, 2006 be approved. Alllyn Feinberg seconded the motion. The motion passed unanimously AGENDA ITEM 2 -Director's Update Mike Patton asked the Board if they ~voulcl be consider adding another agenda item regarding the redistribution of Lottery funds. Because a decision was just made earlier in the day, there was no time to prepare a memo. Ken Dunn asked if it was appropriate to have an agenda item brought forward if it was not adequately noticed. Ariel Calonne explained that public notice is required when possible. Since it was just brought up that day, 24-hour notice was not possible. Ken suggested fitting the discussion in after Director's Updates. Board members agreed. Delani Wheeler said that the state senate struck down a proposal to consider Segways (and other electrical mobility devices) as pedestrians which would have allowed them on all sidewalks, paths and trails. Delani also gave an update on how the Open Space Bond sale would be conducted. She said that about $20 million worth of bonds would be offered in a public bid. Bruce Bland asked why only general obligation bonds were being offered. Delani said that the interest rate is generally better. Revenue bonds will be sold also, but not at this time. Bruce also asked why the full authorized amount was not being offered. Delani answered that the amount was determined by how much the department expected to spend over the next 18 months and did not want to borrow more that would be spent. Finally, Bruce commended how well the finances of the department were managed. Delani introduced Mike Orosel, Financial Services Manager. Ann Goodhart announced that the Culver acquisition was approved unanimously by the County Commissioners. ADDED AGENDA ITEM -Lottery Fund Reallocation Mike Patton distributed a "Heads Up" memo that came from the city manager's office dealing with the reallocation of Lottery funds between Open Space and 1•~Iountain Parks {OSMP) and the Parks and Recreation Department {P~.R). Mike explained that because of the new tax and the overall increase in sales tax revenue OSMP is doing better than the general fund. P&R is anticipating cutting its budget by $300,000-$400,000. The current agreement, made in 2001, allocated Lottery funds as such: $150,000 to the Greenways program, approximately $300,000 for P&R debt service, AGENDA ITEM lA PAGE 1 $100,000 for I1•Iountain Parks operations including the junior ranger program, anything left was to be divided 50/50. This agreement was to last until 2007 at which time the boards of both departments would determine a new reallocation plan. Mike said that the request is for OSMP to give up approximately $260,000 for each of the next 2 years in an effort to alleviate some of the budgetary difficulties P&R was experiencing. By giving it up the department would be cutting back. Mike noted a change in the wording of part of the memo that made it more ambiguous than it was originally but the intent was that there would be along-term sharing of the funds. There would be wide distribution of this information on Wednesday and so it was important that the Board be made aware of the situation as soon as possible. Mike said that the Board can decide to act on this proposal right away or later during the regular budget process in the form of a recommendation or a formal motion. Kay Tauscher asked how the cutbacks would impact the department. Mike responded that during the two years the department might not reach the identified needs or the vision plan for capital projects associated with the Visitor Master Plan (~~'N1P). The reduction would probably cause staff to scale back to the action plan. Mike did not think the scaling back would be unreasonable because there are other community interests at stake. Dave Kuntz pointed out that the amount in question constitutes a third of the department's capital budget. Delani clarified that it would be 37% reduction. This could effect major construction and/or major maintenance projects including trails projects. The department committed all of the Lottery funds it has received toward capital infrastructure projects in the Mountain Backdrop. Allyn asked if P&R would use the lottery funds for appropriate projects and if not was there any chance of losing them. Mike indicated that the city manager's office would pay close attention to how P&R spent the funds. Delani added that there are criteria for how Lottery funds are to be utilized. Ariel said that P&R has project work that will benefit from the funds. Ken Dunn said that OSMP is a team player and acknowledged the budgetary problems of the city. He noted that the city could decide not to make the general fund transfer to OSMP, which would be more detrimental to the department than giving up the Lottery money. Ken supported language that would commit the revenue's return after twwo years. Allyn agreed with Ken, noting the importance of holding onto open space funds. Since this is for a limited period of time, she was willing to accept the proposal. It will be important to be able to return to the same allocation as before, preferably in the form of a written commitment. She also urged that the Board's position be stated in a motion. Mike clarified that at the time the departments assume the original allocation agreement {2009}, P&R's debt service will be finished and the only items taken off the top would be the $150,000 for Greenways and the $100,000 for Mountain Parks -the rest would be split 50/50. Bruce Bland expressed his serious concerns about this proposal. He said that as a trustee it is his duty to be sure the department operates under agreements made. He thought it was not good to give up the money and suggested this could open the door to more requests. Bruce advised not to be intimidated about the potential loss of the general fund transfer and urged fellow Board members to tell council, in the form of a motion, that the proposal is unacceptable. He suggested looking to other city departments for the needed funds. Kay Tauscher agreed that it is difficult to give up the money but under the circumstances it would be agood-will gesture. Mike clarified that the city manager did not indicate that funds would be taken from OSMP in one farm or other. He said he believed that it would be the right thing to do, the critical aspect being that it has a limited term. Bill was concerned that there was a breech of process - a decision was made without finalizing it with OSMP. Ariel acknowledged that he has not reviewed P&R's plans for the funds and because things have happened so fast, he is not able to explain exactly how the money will be spent. Mike explained that the urgency for the discussion was because the information would soon be out and the city manager hoped to present the proposal as a way of AGENDA ITEM lA PAGE 2 addressing P&R's budget crisis which would be included in a packet distributed prior to council's study session. Ken suggested that a response could indicate approval with the understanding that the funds are returned to the 2009 budget and contingent upon the general fund transfer remaining intact. Bill said that although he tended to agree with the proposal he thought it would be important to address the questionable procedure. Bruce said that regarding the general fund, not all would necessarily be taken away and he feels changes must be approved by the Board. He thought it was important that the open space funds be protected and taking money earmarked for the VMP was a mistake that could elicit negative public response. He suggested that since the Public L~'orks Department (Transportation) was also the beneficiary of the increased sales tax revenue it should also be considered as a source of funds. Mike said that the main reason OSMP is in a good place, financially, is because of the recent 4.15 tax. He added that this would be a short term solution and he didn't anticipate additional requests for funds in the future. Kay asked what the implications would be if general funds were eliminated. Mike explained that it could impact staff and, most likely, non-staff expenses. She asked if an increase in tax revenues could be used to replace the missing Lottery money for capital expenditures. Mike said that it must be appropriated by council and there is always a lag but it would be possible. Delani clarified that using Lottery money does not take money from the bottom line, but if tax money was reallocated to make up for the Lottery money it is taken from the bottom line and, therefore, has an impact on later years. Bruce Bland asked about the original Lottery allocation which gave P&R the money for 6 years and then OSMP for the following 6 years. Delani recalled that the city started getting lottery money in 1983 and until the middle 1994s Parks was the primary recipient of those funds. Then there was an agreement between the Parks and Recreation Advisory Board {PRAB} and the Open Space Board of Trustees (OSBT) on sharing the money. OSMP has focused using the money on mountain parks capital projects, deferred major maintenance that came with the merger. Delani explained that the addition of the mountain parks system gave the department a specific reason for needing the Lottery money. MOTION Allyn Feinberg moved that the Open Space Board of Trustees agrees with the reallocation of lottery funds for two years and the agreement being that after 2448 the current approved allocation of lottery funds would be reestablished which will return the Visitor Master Plan infrastructure implementation to the vision plan level and that there be a clear commitment an the part of the city that this will occur in two years. Ken Dunn added a friendly amendment that the Board objects to the last hour change of the information that was shared with the Board during the day. ~A~ith support from Allyn and Kay, Ken decided to change his friendly amendment to a comment that would accompany the motion. Kay Tauscher seconded the original motion. Bruce Bland said that he planned to vote no and thought it vas wrong to give up money without getting something in return far it. There is no way of knowing whether anyone will pay attention to the agreement two years from now. He said it was a big mistake. Bill Briggs said that Bruce's argument was compelling and that if this sets precedence for OSMP to be a bailout fund he would vote with Bruce next time. VOTE The motion passed 4 to 1 with Bruce Bland casting the dissenting vote. AGENDA ITEM 3 -Matters from the Board Bruce Bland voiced his concern about the possibility of Xcel building a gas compressor station south of Marshall Road and asked if the city has gone on record to oppose it. He suggested that the Board should make its stand known to the county commissioners and city council. He said it AGENDA ITEM lA PAGE 3 would be a bad place to put the station because it is near open space and the sounds could be disruptive to wildlife. Ken noted that the Board discussed this last year and requested that the comment or motion that was made at that time be reviewed and reemphasized. ( The following are excerpts from the May 11, 20Q5 OSBT meeting when a similar Xcel station proposal was discussed: Ken Dunn said that he thought the proposed use may not be appropriate for land contiguous to open space and that such input should be taken into consideration us the decision is made. He thought it would be important for the Board to make its position clear. Allyn said that the only information she has heard about this was in the newspaper. Because of the fact that the site is surrounded by open space, she felt it would not be asking too much for that consideration {to delay the decision). Sean (Kendall) reiterated the position of the Board noting that it has reservations about noise, wildlife, and the fact that the impact has not been evaluated. Ken proposed adding that the Board, based on what it knows, feels it is an inappropriate location for that use. Kay Tauscher said that she is concerned about the proposal but does not feel she has adequate background to comment. Sean summarized the Board's directive noting that four members had reservations about the process and two members felt it was an inappropriate use of that location. MOTION Bruce Bland moved that Open Space Board of Trustees recommend to city council that city council make a recommendation to both Xcel and the county commissioners that we are not in favor of having a natural gas compressor station at the 66th and Marshall Road location. Allyn Feinberg seconded the motion. VOTE The motion passed unanimously. Bruce Bland reported on an innovative way to prevent beavers from cutting cottonwood trees. He said that sand was painted on the trunks of the cottonwoods. The beavers did not like getting sand in their teeth so they started gnawing crack willows instead. Bill Briggs asked for an update on a recent request for a memorial bench on open space. Mike responded that there is a small group of staff which reviews such requests and that a staff person has been in contact with the requester. There is a policy that, presuming a location is appropriate, there is some agreement far ongoing maintenance. Generally, staff looks for agreeable alternatives to benches. Bill commented that the Eldorado/Doudy Draw Trail Study Area {TSA) open house was impressive. He commended staff for the job they do in the public forums. Bill said was important because people are passionate about the decisions and it means a lot to them that they are listened to. The whole process is well conceived. He said the real balancing act will be that people get heard and there is an effort to try to accommodate reasonable requests and proposals. Mike Patton said that this is an area that is of particular interest to mountain bikers. He acknowledged that this TSA ~vi11 be more difficult but he was optimistic about it. AGENDA ITEM 4 -Public Participation None. AGENDA ITEM 5 - 20fl7 - 2D12 Greenways Capital Improvement Program Dave Kuntz introduced Mark Gershman, the department liaison with the Greenways program. Mark reported that OSMP has been working with the Greenways program since its inception. The purpose of this item would be to seek comment from OSBT on the Tributary Greenways Program AGENDA ITEM lA PAGE 4 Capital Improvement Program (CIP). The capital project that has particular relevance to OSMP is the Fourmile to Cottonwood trail connection. IVlark gave an update on some of the collaborative projects including working to control New Zealand mudsnail, Russian olives and Eurasian water millefoil. A significant project that will be funded by the Army Corp of Engineers is the restoration of Goose Creek. Ken Dunn commented that it was encouraging to hear about all the work that is going on especially the habitat restoration projects. Mark said that the Gneenways Master Plan was up far its 5 year update. The trail construction projects have clear direction. Staff decided to use the unspent money to hire a consulting firm to provide evaluations and recommendations far habitat restoration projects. Allyn Feinberg reported that seven additional tributaries would be included in the master plan update. Dave Kuntz announced that Mark, besides his position as an Environmental Planner, is now acting as the Resource Conservation Supervisor. Ken Dunn said that taking on additional responsibilities shows staff's commitment and professionalism. Allyn commented that staff and the Board have provided good input to the Greenways program. Bruce commended Mark's early involvement in vegetation mapping for Greenways. Public Participation None. Return to Board & Staff MOTION Bruce Bland moved that the Open Space Board of Trustees recommend that Open Space and Mountain Parks and Greenways staff work collaboratively to implement funding and scheduling for a program of habitat maintenance and restoration where Greenways' and Open Space and Mountain Parks' interests overlap. Allyn Feinberg seconded the motion. VOTE The motion passed unanimously. AGENDA ITElti'I 6 - Consideration of a motion to recommend approval of the purchase of the following properties from Joel and Rutlt Eisenberg: 5336 N. Foothills Highway consisting of 50 acres with improvements for $1,340,000; and 5272 N. Foothills Highway consisting of 15 acres with improvements for $550,000; together with all mineral rights. An additional $5,000 is requested for immediate land management needs, such as ~i~eed control. Ann Gaodhart explained that the acquisition proposal consisted of two parcels totaling 65 acres. The property is nearly surrounded by open space properties. There are open space trails in the vicinity and one actually cuts across the corner of the northern parcel. Ann explained that the purchase agreement includes the use of a Boulder Municipal Property Authority (BMPA) note which would be paid off in ten years. The Eisenbergs would continue living in the residence on the north parcel and their life estate would be limited by a conservation easement. Once the life estate is extinguished, staff will determine the best use for the residence. However, deconstruction or moving the structure cannot take place until the note is paid off The small house on the south parcel is currently being leased and the tenant would be allowed to live there for two more years. When the tenant moves staff will determine what to do with the buildings and improvements that exist on that part of the property. Ann described the physical aspects of the properties and explained how the acquisition meets charter goals. The purchase price is appropriate for similar acreage close to the city. The additional AGENDA ITEM lA PAGE 5 $5000 requested would be used primarily far weed control. Bi11 Briggs asked if there was a discount for the life estate. Ann responded that in this situation there is not much of one since it is limited. The Eisenbergs will be responsible for maintaining the property until it is taken over by the city. Responding to a question by Bruce, Ann responded that there were no water rights with the property but mineral rights are included in the purchase. Bruce asked if there were any native fish or amphibians in the ponds. Ann told him that the resource staff indicated that there probably are, but a detailed inventory has not been taken. Bruce asked how this land would be classified. Dave responded that by previous direction from council a management assessment must be completed. Generally, properties like this are managed the same as the lands adjacent to them. This would probably have a passive recreation designation. Bruce asked if there is an estimate on haw much it will cost to deconstruct house. Jim Reeder said that it would probably cost $8,000 or less. Bruce suggested instead of tearing down the house to portion off that part of the property and sell it. This would recoup some of the purchase price. Staff will return to the Board when the time comes to make a decision about what to do with the structure. It is possible that the house could be used for rental property although the department is not interested in tlus. Mike said that in the past offers to move houses have been rejected due to the cost. Public Participation None. Return to Board & Staff MOTION Allyn Feinberg moved that the Open Space Board of Trustees recommend that the Boulder City Council approve the purchase of 5336 North Foothills Highway far $1,340,000 and 5272 North Foothills Highway for $550,000, together with all mineral rights as well as an additional $5,000 for immediate land management needs from Joel and Ruth Eisenberg for Open Space and Mountain Parks purposes. Kay Tauscher seconded. VOTE The motion passed unanimously. AGENDA ITEM 7 -Consideration of a motion to recommend the purchase of a conservation easement on three parcels of land totaluig approximately 128 acres for $228,333 fi•om Boulder County located east of Gross Dam Road adjacent to ~r'alker Ranch open space and Eldorado Canyon State Park for Open Space and 11~Iountain Parks purposes. John D'Amico described the Chute Road property as actually consisting of three properties: the Westphal, Stone and Buffalo properties. Boulder County will acquire the property in fee and OSMP will pay a third of the purchase price in exchange for a conservation easement. The properties provide dramatic views and substantial building sites. This purchase will eliminate three building sites. Vehicular traffic to the property is by private road so there is no public access by road. The properties are surrounded by Walker Ranch County Open Space and Eldorado State Park which are accessible by foot. The county has indicated that there are potential opportunities for trail connections. There is no water on the properties but they appear undisturbed - no signs of logging. The Rice Sisters property can be seen from here. Bill Briggs questioned the need far the conservation easement. Jahn explained that with joint ownership arrangements it adds another layer of protection. He said that there have been a variety of arrangements made for jointly acquired properties. Ann added that the area of management is what guides these arrangements. Mike said that the city and county have a general understanding of the areas where each would acquire land and areas of potential joint acquisitions. Typically, if a property is surrounded by city land, OSMP would have fee ownershp. Bruce asked about possible agricultural uses of the property and John told him there were no such plans. Ken noted that it is AGENDA ITEM lA PAGE 6 helpful to list specific charter purposes at the end of the memo and suggested being more specific about the special kinds of plants and animals that are found. Public Participation None. Return to Board & Staff MOTION Bruce Bland moved that the Open Space Board of Trustees recommend to the Boulder City Council approval of the purchase of a conservation easement on three parcels of land totaling approximately 128 acres for $228,333 from Boulder County located east of Gross Dam Road adjacent to tValker Ranch open space and Eldorado Canyon State Park for Open Space and Mountain Parks purposes. Kay Tauscher seconded the motion. VOTE The motion passed unanimously. Ken commented that it is because of the good relationships staff has with landowners, that permit such properties to be available to the department. Mike, for example, said that Ann has been diligent in pursuing the Eisenberg acquisition for probably ten years. AGENDA ITEM $ -Recommendation for approval of supplemental appropriations for the 2406 budget. Delani Wheeler summarized that this agenda item was a request to council to approve an adjustment to the 2006 budget to release money from the bottom line for 2006 expenditures. She gave three reasons why staff felt comfortable with the request: 1}the overall growth in sales tax revenue, 2) the actual miscellaneous revenues for 2005 came in over the original projection, and 3) there was money left over from 2005 appropriations. The money would be used, primarily, to implement the VMP. Specific uses of the money were listed in the memo. Future budgets will accommodate extending some fixed term positions. Responding to a question from Ken regarding the purchase of an additional ranger vehicle, Mike responded that the department purchases vehicles through the city fleet arrangement and noted that rangers share vehicles. Jim Reeder added that OSMP has been recognized as the most aggressive department in the city in ordering alternative fuel vehicles. Ken also questioned the need for more office space since at some point in time the VMP will not require as much staff. Mike acknowledged that some staff positions are fixed term but it is hoped that the department will eventually move toward a fuller (permanent) staff Allyn asked if the fixed terms will continue to be extended. Mike explained that some monitoring projects, for example, will have specific durations. Some are likely to go away and some will continue depending on the budget. Delani added that, for example, the sign installation position would probably not be needed after a couple of years. Daue acknowledged that the department has an aggressive implementation schedule and needs to have enough staff to meet those goals. He highlighted the need for a cultural resources staff person. Allyn asked what the city's clean-up responsibilities were at Valmont Butte. Staff responded that only a portion of the problems that exist are on OSMP property. Eventually the prairie dogs will have to be removed and a new cap put on the tailing ponds. At some point the site, except the OSMP portion, will be sold by the city. Ariel Calonne explained that the city will continue to have some liabilities for the area but the maintenance will be transferred to new owners. Bruce asked about the $189,000 grant carryover. Delani explained that it is unachieved revenue that would be coming in to the department. AGENDA ITENI lA PAGE 7 Public Participation None. Return to Board & Staff 1VIOTION Bruce Bland moved that the Open Space Board of Trustees recommend that council approve the supplemental appropriations described, including total carryovers of $2,709,000 for capital and $189,213 for grants, as well as a new allocation of $599,916 for operations. Kay Tauscher seconded the motion. VOTE The motion passed unanimously. ADJOURNMENT -The meeting adjourned at 8:50 p.m. These minutes were prepared by Cecil Fenio. APPROVED BY: Ken Dunn Board Chair DATE AGENDA ITEM lA PAGE 8 Approved 9/13/2006. OPEN SPACE BOARD OF TRUSTEES IVlinutes July 12, 2006 BOARD MEMBERS PRESENT Ken Dunn Kay Tauscher Bruce Bland Allyn Feinberg STAFF PRESENT Mike Patton Dean Paschall Ariel Calonne Jim Reeder Delani Wheeler Ann Goadhart Cecil Fenio Mike Orosel Jim Schmidt John D'Amico Jessica Buchanan Linda VanDervort CALL TO ORDER The meeting was called to order at 6:05 p.m. AGENDA ITEA'I 1-Approval of 1VIinutes Bruce Bland moved that the minutes of June 14, 2006 be approved. Allyn Feinberg seconded the motion. The motion passed unanimously. AGENDA ITEIi'I 2 -Director's Update Mike Patton reported that a press release went out Monday indicating enforcement for the dog tag program has been pushed back a week due to technical difficulties with online registration. The source of the problems appears to be the city's web server and it is expected to be corrected by I4londay. Management options for the Jacob residence John D'Amico reviewed the management options for the residence on the Jacob property which was acquired in 2005. There appeared to be three possible options: lease the residence, carve out a portion containing the house to sell with a conservation easement or, remove the house by deconstructing or moving it. Staff determined the financial benefits and needs of each option. Leasing does not serve charter purposes. Selling the residence would create good one-time revenue but staff thought it would pose a management challenge. The benefit of using the revenue to help buy other properties wwas not a realistic substitution. Removing the residence will cost approximately $27,000. Staff made a recommendation to the Director's Staff to deconstruct the house if relocation is not a possibility. Allyn Feinberg commented that, in her opinion, deconstructing a house would be a last resort but it seems that in this situation deconstructing and recycling is a reasonable alternative. l~-Jike Patton agreed and added that from past experience trying to relocate a house from a rural location is difficult and expensive. Bruce Bland noted that if the house was sold it would reap about $475,000 that could be used for buying other properties. Allyn asked if the price Bruce mentioned was appropriate far that property with a conservation easement on it. John responded that it was a reasonable estimate. Ann Goodhart reiterated that if tlus was sold as an inholding it would be more difficult to manage the retained land. John reminded the Board that creating an inholding was the only way the neighboring Andrea property could be acquired and was considered the only option for that purchase. He added that this is good habitat and an inholding would interrupt it. Bruce Bland said he was not convinced there would be many management problems if a small portion was sold considering all the restrictions of the conservation easement and he favored that option over the others. He reminded the Board that although leasing may not support charter purposes, OSMP is involved in leasing and he would consider that as a second option. He said, in his opinion, deconstructing would be a final option. AGENDA ITEM IA PAGE 1 Kay Tauscher questioned the use of the term "specifically" at the top of page 2 in the handout and Delani agreed the word should be "significantly". She then explained additional costs, including long-term management, if a portion of the property was sold. This would reduce the value of selling a portion of the property. Ken asked if sale or removal would include all the outbuildings. John clarified that it would. Ken then asked if a disposition would be needed in order to sell the portion of the property containing the house and staff affirmed that it would. In response to a final question, I\•Iike confirmed that the house will be offered for free to anyone willing to move it. If there are no takers, the proposal is to then have it deconstructed and recycled. Ken said that if there are no takers to remove the building he would support deconstruction of the house and reclamation of the land. Allyn Feinberg and Kay Tauscher agreed with Ken. Bruce preferred to sell the small section of the property but shrink the envelope by removing the smaller buildings on the property. Responding to a question from Kay, John clarified that the property had not been recently used for agricultural purposes. Staff will remove the house either by moving the house or by deconstruction. Outbuildings will be removed as well. Marshall Mesa Trail Jim Reeder gave an update on the Marshall Mesa connector which is close to completion. The old Marshall Mesa trailhead will be closed once the new trailhead is complete. The permitting process for the trailhead is still in process. Mike added that the bridge over Davidson Ditch will soon be installed. Mike Patton introduced Jessica Buchanan to the Board. Jessica is a new administrative specialist working closely with the management team. COSA Conference Delani distributed registration forms for the COSA conference and invited Board members to attend. Completed forms need to be returned to the department by the end of the day, July 20. City litigation Ariel reported that the city was pursuing a lawsuit against Park Studies for information connected to the visitor study. It is a last resort but the defendant has not responded to calls. Ken Dunn asked if the integrity of the information was in jeopardy. Ariel said that staff is confident the information is accurate. Mike Patton clarified that the final report is what the city is pursuing. AGENDA ITEM 3 -11'Iatters from the Board Bruce Bland asked if the recent rain caused an increase in the mosquitoes that carry West Nile virus. Mike reported that there was an initial spike in the mosquito population but then it went down, dramatically. He had no current information to add to that. AGENDA ITEM 4 -Public Participation None. AGENDA ITE11'I 5 - Consideration of a motion to approve the purchase of a conservation easement on approximately 34 acres of land and the acquisition of 15 shares of Lefthand Ditch Company located at Oxford Raad and North 63rd Street for $340,000 from the J- Fainily LLC, which is the city of Boulder's share of the purchase price. Boulder County Parks and Open Space will share the purchase in this acquisition for a total of $680,000 and will obtain the fee title to the 34 acres, title to all mineral rights owned by the Sellers and title to an additional 15 shares of Lefthand Ditch Company. Jim Schmidt explained that this proposal was for a joint purchase with the county of 34 acres and water rights. He explained that the shares of water are divided evenly, 15 for the city and 15 for the county, for voting purposes. For this purchase the county would own the fee interest and the city would hold a AGENDA ITEM lA PAGE 2 conservation easement. All the water rights are tied to the property through the conservation easement. The property has been fallow and will be attractive once irrigation and haying begins. The parcel is favorably impacted by the presence of the Holland Ditch which creates a riparian area along the western boundary. Staff believes the price is great, split with the county. Tlus sale is comparable to other joint purchases anticipated in the northern area. Bruce Bland asked if the mineral rights have been severed from the property. Jim said that the county's title work has not come tluough but the county will awn the mineral rights. Bruce asked if the water in Lefthand Ditch water was high priority water. Jim responded that it was an older, established water right. Ken Dunn asked if the staff recommendation to "restrict development of mineral rights" meant prohibiting the development of mineral rights? Jim confirmed that it did. Ken questioned if there would be any chance of a mineral right coming up that could not be extinguished. Jim said that it is possible but nothing is anticipated regarding minerals being severed from the property. Jim agreed to email the title report information to Board members once it is received. Finally, Ken asked what would happen to the prairie dog colony present an the property. IVlike Patton said that management decisions would be the responsibility of the county although Open Space and Mountain Parks (OSMP) can make recommendations on the management plan. If the area is irrigated, the prairie dogs will move on their own. Kay Tauscher asked if the Open Space Board of Trustees {OSBT) would be informed if the county intends to use it for agricultural purposes. Jim responded that the intent is to irrigate the property beginning next year and eventually make hay or pasture part of the property. Public Participation None. Return to Board & Staff MOTION Allyn Feinberg moved that the Open Space Board of Trustees recommend to the Boulder City Council the approval of the joint acquisition with the County of a conservation easement on approximately 34 acres of land and the acquisition of 15 shares of Lefthand Ditch Company located at Oxford Road and North 63rd Street. The City's share of the purchase price for this property will be $340,000. The conservation easement shall additionally restrict development of mineral rights and tie a1130 shares of Lefthand Ditch Company water to the parcel. Bruce Bland seconded the motion. VOTE The motion passed unanimously. AGENDA ITEA'I 6 -Consideration of the purchase of approximately 32 acres of land in fee, including all mineral rights together with a conservation easement on approximately 40 acres foi• a total of $460,000 from Jolm and Patricia Kineman located at 959 and 1101 Bison Drive for Open Space and Momitaui Parks purposes. John D'Amico explained that this property is part of the original Mountain Parks acquisition plan, the Pine Needle Notch area, and has been a high priority since I99~. It is similar to the Miller property in that it is relatively undisturbed and very visible from Walker Ranch. The conservation easement on the 40 acres that the owner will retain includes standard restrictions. Bruce Bland asked if the conservation easement would include height restrictions for any rebuilt house. John answered that the county requirements would have those limitations {35 feet from grade). Regarding pets, Linda VanDervort clarified that any unsupervised pets are not allowed to run loose on the property. Bruce voiced his concern that neighbors might let their pets run on the property. John acknowledged that it would be passible but the area is monitored and rangers have the ability to write a summons. Bruce suggested that staff write letters to the neighbors letting them know that loose pets AGENDA ITEM IA PAGE 3 would not be welcome on the property. Finally John affirmed that the mineral rights would come with the property and would also be protected under the conservation easement. Public Participation None. Return to Board & Staff MOTION Kay Tauscher moved that the Open Space Board of Trustees approve and recommend to Boulder City Council the acquisition of approximately 32 acres of land in fee, and all mineral rights together with the purchase of a conservation easement from John and Patricia Kineman on approximately 40 acres located at 959 and 1101 Bison Drive for a total of $460,000 for Open Space and I1•Iountain Parks purposes. Allyn Feinberg seconded the motion. VOTE The motion passed unanimously. AGENDA ITEM 7 - Consideration of recommendations for the Preliminary 2007 Open Space and A'Iountain Parks Departmental Management and Capital Improvement Projects (CIP) Budgets. Mike Orosel, Financial Services Manager, reviewed the recent past revenue fluctuations, the current tax revenues and projected revenues. He explained that the 2007 budget includes projected expenses as well as the proposed adjustments to base. In 2007 staff is recommending 7.17 additional FTE positions; details of the positions are included in the memo. The contingency reserve will be maintained at the same level as in previous years. This includes the debt reserve, funds for TABOR requirements, and money for potential property and casualty liability. He added that in 2007 a new reserve line item will be established to provide the funds needed for an extra pay period anticipated in 2013. In 2007 and 2008 staffis requesting $3.9 million for Capital Improvement Projects and $4.1 million thereafter. OSIVIP is foregoing its share of the Lottery Fund in 2007 and 2008 as agreed with Parks and Recreation. In 2009 OSMP will regain this funding which is expected to be about $425,000 annually. Mike explained that the cost allocation is what the department contributes for using other departments' services such as Human Resources, Information Technology and the City Attorney. The 2007 budget shows a 2.4% increase in cost allocation. The new budget also reflects funds needed to implement the Visitor Master Plan. Ariel Calonne explained the position he has taken for the City Attorney's Office. He clarified that there are various instances when the city is interested in having a waiver or rebate of the sales and use tax. His stance is that waivers and rebates can only apply to the General Fund portion of the sales and use tax and that earmarked portions cannot be converted by a waiver or rebate into a "General Fund" privilege. With economic development, only approximately 45% of General Fund sales and use tax is available. Ariel believed this is the correct legal analysis otherwise it would be too easy to subvert the earmarking of those special taxes through a rebate. He said that both the Finance Director and the City Manger were aware of tlus. Allyn Feinberg asked if there were any new staff positions that are needed on a continuing basis and how this relates to the department's conservative stance keeping them in a seasonal or fixed-term status. Mike Patton affirmed that the department does keep a conservative stance and as it gets more comfortable staff will request more permanent positions. Allyn asked if there was any problem in getting quality people on a fixed-term basis. Mike Patton responded that there was and there are also some fixed-term employees that the department wants to keep. He agreed that the competition would be more intense if positions offered were on-going. Allyn asked if there was any chance that the mountain parks transfer would get back to the level it once was. Mike Patton said he didn't expect it in the near term but it was increasing. AGENDA ITEM lA PAGE 4 He reminded the Board that the General Fund continues to be in a more difficult financial situation than OSMP and would not be able to increase its transfer until it gets past that. The city manager is functioning under a constrained budget. Delani Wheeler reminded the Board that part of OSA~IP's ability to hire mare staff is based on the passing of the .15 percent tax in 2003 and noted that the sales tax increase is based on an adjusted amount without the exceptional one-time revenues from 29~` Street building permits, the Law Library, etc. Allyn reported that City Manager Frank Bruno agreed to show the Lottery Funds returning to OSMP in 2009 in all the relevant budget documents including the CIP and fund financials. She hoped that the Board could see these documents as soon as they are available and recommended that they be approved by council. Allyn stressed the importance of using the Lottery Funds for capital projects, visible to the community, and that council should discuss the use of Lottery Funds as a policy matter. Ariel Calonne said that Parks had to address its sales tax obligation sa they had sufficient capital projects to use the lottery money on. A justification of how the funds are to be used is a requirement of the statute. Bruce Bland recommended the need for more rangers. Mike said that affixed-term ranger position was in the recommendation and added that some trail work will be contracted out and tlus will address same of the department's other staffing needs. He agreed with Bruce that more staff is needed. Bruce suggested that the lottery money given to Parks and Recreation could have been used to leverage more staff In response to Bruce's question about the apparent deficit an the 2007 Budget Overview, Mike Orosel explained that the overview reflects the funds that come into the department and how they are spent and does not include money carried over. Unti12009 the sources of funds will exceed the expenditures. Bruce asked how the cost far the trails in the Eldorado Mountain and Daudy Draw Trail Study Area (TSA) was derived since a decision on the trails has not been finalized. Jim Reeder responded that the amount was what the department had left over and it was a reasonable, affordable amount. Jim agreed that it may actually require more funds over time. Mike clarified that this was not a commitment to spending. Bruce asked why no construction projects were budgeted for the years from 2008 to 2012. Delani answered that the funding was there; it was just not broken dawn. Bruce asked why the amount expected to spend on water rights goes up significantly in 2009 and 1~1ike Orosel explained that the money had been diverted for other needs for two years and that was the year it will be restored. He confirmed that it would not preclude the ability to buy water if an opportunity arose in the mean time. Regarding the Lottery Funds, Bruce requested a copy of the memorandum for lottery reallocation. Bruce asked for an explanation of the category labeled "potential property casualty liability". Delani explained that it was for legal fees in the event of a lawsuit. Ariel added that the amount reflects a number between the statutory amount for an individual and joint event. He confirmed that the liability amount was low which was good for a public agency. Bruce voiced his concern about the amount in the contingency reserve and recommended that it be increased by about $750,000. Mike Patton replied that staff has looked at the reserve but to increase it would mean something else would have to be decreased. Historically the department has not needed to take from the reserve fund plus there is other money coming in that would be available if needed. Ken noted that during the middle of the downturn the department made it through and he felt comfortable that staffs conservative approach is adequate. Bruce suggested bringing it up next year when the budget is being made. Kay Tauscher said that her concerns were that the FTEs were essentially the same and that staff was maxed out with Visitor Master Plan {VR~IP}. She asked if it was realistic to continue at this level, particularly because of its impact on staff and if the VMP can be adequately implemented. Mike Patton acknowledged that her observation was fair. For example, he said, the people who are working an implementing the Southern Grassland TSA are the same staff members who are developing the Eldorado/Doudy Draw TSA. With the current staffing level, the department may have to lay back a bit. Mike said that he did not see a rapid increase in staff and much will depend on scheduling. Staff is AGENDA ITEM lA PAGE 5 learning a lot. Bruce noted that the worst that could happen is that it will take a bit longer to complete. Mike said that the original staff estimate was not realistic in estimating the timeframe for the TSAs to be completed. Because of the agreement with council, the longer it takes to go through the TSA process the longer the Habitat Conservation Areas (HCAs} are open to ofd trail use. Public Participation None. Return to Board & Staff MOTION Allyn Feinberg moved that the Open Space Board of Trustees approve and recommend that City Council approve the appropriation in 2007 of $25,006,021 from the Open Space Fund and the General Fund to cover the 2007 Open Space and Mountain Parks Department expenditures and transfers as outlined in this memorandum and related attachments. Kay Tauscher seconded. Allyn Feinberg moved that the Open Space Board of Trustees approve and recommend that Planning Board and City Council approve $3,9$0,000 annually in 2007 and in 2008 and $4,150,000 annually thereafter from the Open Space Fund 2007 through 2012 CIP budgets; and $425,000 per year, based an current projections and methodology, commencing in 2449 and continuing thereafter from the 2407 through 2012 Lottery Fund CIP allocation to OSMP as outlined in this memorandum and related attachments. Kay Tauscher seconded the motion. VOTE Both motions passed unanimously. Mike Patton invited Board members to accompany staff members to the Eldorado/Doudy Draw TSA at their convenience. He encouraged the Board to visit this remarkable part of the system. ADJOURNMENT -The meeting adjourned at 8:10 p.m. These minutes were prepared by Cecil Fenio. APPROVED BY: Ken Dunn Board Chair DATE AGENDA ITEM lA PAGE 6 Approved as amended 7/2.5/2007. OPEN SPACE BOARD OF TRUSTEES Minutes June 27, 2007 BOARD MEMBERS PRESENT Bruce Bland Kay Tauscher Bill Briggs Allyn Feinberg STAFF PRESENT Mike Patton Dean Paschall Mike Orosel Jim Reeder Delani Wheeler Ann Goadhart Cecil Fenio Ronda Romero Mark Gershman CALL TO ORDER The meeting was called to order at 6:05 p.m. AGENDA ITEM 1-Approval of Minutes Allyn Feinberg moved that the minutes of May 9, 2007 be approved. Kay Tauscher seconded. The motion passed unanimously. Kay Tauscher moved that the minutes of 1VIay 22, 2007 be approved. Bill Briggs seconded and the motion passed unanimously. AGENDA ITEM 2 -Director's Update Mike Patton told Board members that an important acquisition would be brought to the next Open Space Board of Trustees (OSBT) meeting which will be held on July 25. Ann Goodhart added that the acquisition proposal will then go to council on August 21. Staff has been taking interested council members to visit the property. Upcoming items for future Board meetings include the Goshawk Trail alignment, a conversation with Ron Stewart, Director of Boulder County Parks and Open Space, and an update on the Highway 36 DEIS. Delani ~~'heeler reported on the successful volunteer project that occurred on the C~attontail Trail. She said about 30 volunteers participated despite the hot weather. Nlike Patton announced that five bald eagle fledglings have been observed on Open Space and Mountain Parks {OSIvIP) land this summer. AGENDA ITEM 3 -Matters from the Board Allyn Feinberg gave an update on the recent Greenways Advisory Committee meeting. One of the discussion paints revolved around appropriated funds and whether or not there should be an effort to spend rather than carry over unspent money. Because Cn-eenways does not usually know the CIP plans of the involved departments, it is often difficult to coordinate projects that will be mutually beneficial. By developing a foixnal method of communicating this information, departments may benefit from Greenways' ability to work on projects of mutual interest. Mark Gershman explained that OSMP does not include project details in its CIPs at the level that would be useful to Greenways at this time. He went on to describe some of the other Greenways projects including the Goose Creek restoration, IPM crass training with OSMP, and planting along Bear Creek near the hospital which will require some preliminary engineering. Because mowing weeds is less successful on perennials, the consultant recommended using of alternatives, including herbicides, in same areas. Kay Tauscher asked if there was a Greenways staff. Mark responded that Annie Noble is the Greenways coordinator and there is a seasonal crew of six which does weed management and restoration plantings. Allyn explained that, originally, the Greenways program included Boulder Creek and five of its tributaries all of which have bike trails along some stretch and may be involved AGENDA ITEM I PAGE I in flood control projects. Seven additional tributaries will be added in the next master plan so that all the waterways in the city will then be included. Currently there are no plans for bike trails along these newly added tributaries but they are subject to flood control projects. The advising committee to Greenways is composed of representatives from the advisory boards of the involved departments: Open Space and Mountain Parks, Environmental Affairs, Parks and Recreation, Transportation, Water Resources and Planning. Allyn asked about the investigation into the work done at Arapahoe and Foothills where there was significant impact to the wetlands and prairie dog colony which are within a conservation easement co-owned by OSMP. Mike Patton told her that aside from some initial conversation, OSMP has not been involved in the investigation and was not privy to information that was identified as a personnel matter. Allyn was concerned that such a thing could happen again and Mike assured her that staff will be vigilant in future situations where there is a public works project that could impact OSMP interests. Allyn suggested that council could possibly clarify the priorities in projects that involve public infrastructure and other community values adding that they should not be in conflict. Mike said that following the discovery of the questionable activities, city staff exhibited a heightened awareness of appropriate protocol for permitting processes. Allyn asked if Utilities agreed to cover restoration costs. Mike told her that conversation about casts for mitigation and/or restoration is probable. Kay Tauscher asked if a system was in place to prevent such situations in the future. Mike told her that he and Tracy Winfree, Director of Public Works far Transportation, have agreed to contact each other in the event of any activities that have the potential to impact OSMP interests. Bill Briggs reported that he has received numerous comments from members of the public over the past 2-3 months regarding the increase in rules, regulations and restrictions primarily due to the new permitting program and stricter dog policies. He said that these came as a surprise to many people who do not follow such developments. He said they complained ofheavy-handed enforcement. Bill stressed the importance of public support and encouraged staff to pay attention to public sentiment and suggested emphasizing education rather than enforcement. He said people living in the neighborhoods near Bear Canyon and lower Skunk Creek were particularly distressed by the new dog restrictions and he asked if staff could reassess these areas of low volume use. He said staff should determine if the policies are really working as intended and if they are justified. Mike agreed with the irnpartance in maintaining public good will. He acknowledged that staff knew that general area would be difficult and noted that neighborhoods often have a different sense of how their area should be managed. Every time OSMP makes changes it is confusing. Staff does not object to lacking at these places. Bruce Bland said that he uses those trails quite a bit and doesn't hear the complaints. He suggested that possibly there may be same coordination in lodging complaints to a more sympathetic ear. Allyn recalled the intention to look at how the program was working after a year and suggested that this may be an area that needs review. Staff can determine if the reasons dogs need to be leashed hold true. Mike agreed and told the Board that recently staff has been reviewing the trailhead leash program which has been successfully accepted by the community. He said that the department has made a commitment to monitoring but nothing precludes staff from lacking at this particular area. Mike noted that staff has also heard that it isn't enforcing the dog regulations in that same area. Allyn said that sometimes it is worth reaching out to members of public to see how they feel rather depending on the anecdotal information from people who are upset. Bill suggested locking at a success story such as the trailhead leash program and determining if it was due to enforcement ar education. Mike responded that there was a substantial educational campcnent but also that particular regulation seemed to resonate with people. Jim Reeder said that the drainage on the Marshall IVlesa Trail should now be fixed. AGENDA ITEM I PAGE 2 Bruce Bland reported that a scientific paper on climate change predicted weather pattern changes to happen fast... within years to decades. He urged that such changes be considered as the department makes its long range plans. AGENDA ITEM 4 -Public Participation Robert Sharpe, 5995 Marshall Road, pointed out that the time scheduled far Public Participation was usually not accurate and suggested that Board discussion be temporarily interrupted in order to allow the public to speak at the appointed time. He urged the Board to be more critical of staff and questioned the credibility of some of the staff reports and assessments. 1~Ir. Sharpe claimed that there have not been adequate studies to support management decisions. He said the department is charging forward and that many of resources that should be are not being protected. Studies are not being done and the scientific criteria for evaluations have not been established. Mr. Sharpe disagreed with Mike's statement that there was virtually no off-trail use in the Marshall Mesa area. He also urged the department not to change regulations because people are unhappy about them. He encouraged the Board to seek out broader views from staff members. Bruce Bland noted that staff does give a variety of viewpoints on policies and decisions and suggested to Mr. Sharpe that he contact him by email. Bill Briggs agreed that direct contact with Board members may be more effective. Mike Patton disagreed with Mr. Sharpe's statement that requested information was not provided to him. Mr. Sharpe stated that he had not been given any document that shows scientific criteria for evaluating resources. Kay Tauscher told Mr. Sharpe that the Board is continually critical and constructively evaluating what staff is doing. Kay suggested that he talk to the appropriate staff person and get involved with a subcommittee and the public groups dealing with issues of concern. Mr. Sharpe clarified that he never said there were no scientific studies but rather that there are no scientific criteria for what studies are needed. AGENDA ITEM 5 -Consideration of recommendations for the Preliminary 2008 Open Space and Mountain Paiks Departmental Capital Improvement Program Budgets. Mike Orosel said that the CIP is a six-year plan and the staff proposal covers the years 2008 through 2013. He explained that for several years the CIP remained relatively constant but last year funds were reallocated by reducing the water rights acquisition budget to $30,000 far 2 years. In 2009 it will be fully funded again at $200,000. The department also agreed to let Parks and Recreation utilize OSMP's share of the Lottery funds for two years. This funding will return to OSMP in 2009 and is expected to be about $475,000 annually. Allyn Feinberg asked if the temporary reduction in water rights acquisition funding prevented the department from any desirable opportunities. Delani Wheeler explained that no opportunities were lost and that acquisition funds can also be used to purchase water. Allyn asked what kinds of projects the $90,000 balance in the visitor infrastructure would be used far. Jim Reeder responded that it would be used far TSAs, the initial stages of planning the Marshall Lake Trail and small rebuilds that are too large to be considered maintenance. Bill Briggs pointed out that the report stated "...there will be a shift of focus and funding from acquisition to management..." and asked haw that was reflected in the CIP Budget spreadsheet {Attachment A}. Mike Orosel clarified that the spreadsheet timeline does not go out far enough to AGENDA ITEM I PAGE 3 show the shift in funds. Delani said that there will be a gradual increase in revenues over time and the primary shift will take place in 2018 and 2019 because payments for Bands and BMPA notes are structured to coincide with the expiration of the 0.33 and 0.15 cent sales taxes in 2018 and 2019. She pointed out that the Lottery money coming back to the department in 2009 would be utilized for visitor infrastructure. Mike pointed out that the approximate million dollars that will be available for visitor infrastructure does not include staff. Delani said that a more complete explanation of operating costs will be made in August. Kay Tauscher asked Ann Goodhart about the expected $110 million needed to complete the acquisition plan. Ann responded that the department's banding capacity and its ability to sell BMPA notes plus partnerships with Boulder County are all tools that can be used to help purchase acquisitions. Ann said the 7000-acre acquisition goal is doable. Bruce Bland asked why there was no money budgeted for cultural resources. Mike Patton explained that currently projects and assessments come out of the operating budget. He reminded the Board that a cultural resource position was requested in last year's budget but was cut. It will be included in this year's budget proposal again. Bruce suggested setting aside funds to stabilize structures to prevent further deterioration and stressed the need to increase funding for these irreplaceable resources. Allyn Feinberg asked about the budget process and if Board members would have a chance to make comment before the final budget is presented to council. Mike Patton and Delani Wheeler acknowledged that the city manager's staff carefully reviews departmental budgets and makes changes based on priorities, levels of service and the council filter impacts of economic, social and environmental sustainability. The revised budget will then be presented for council approval. Allyn noted that council members only see what the budget looks like after the changes are made by the city manager's staff and so is not able to comment on items that have already been removed. She said that the proposals made by OSMP are fundable; otherwise they would not be in the budget. Therefore, items that are removed must be due to the perception that OSMP has a financial advantage over other city departments. Mike said that it would be irresponsible for the department not to spend the money to implement the Visitor Master Plan and assured Allyn that the Board would have a chance to comment on the budget before it goes to council. Kay Tauscher asked what happens to funds that are available for items that are cut from the budget. Mike Orosel told her that the unappropriated money goes to fund balance and remains as Open Space money. Mike Patton explained that the situation is never simple. OSI\~IP receives a $1 million General Fund transfer as part of the consolidation agreement. With the current state of the city-wide budget it would not be surprising far a councilmember to suggest that funding go to other city priorities. The council's action plan requires $4.5 million of which it only has $1 million. Allyn Feinberg asked if the increase in sales tax revenue would have a positive impact an the General Fund. Mike Orosel explained that council agreed to certain financial triggers to fund compensation; that when sales tax revenues increase to certain levels some of the money is diverted to benefits. Public Participation None. Return to Board & Staff MOTION Allyn Feinberg maned that the Open Space Board of Trustees approve and recommend that the Planning Board and City Council approve $3,980,000 in 2008 and $4,150,000 annually thereafter from the Open Space Fund CIP 2008 through 2013 budget; and $475,000 per year in 2009 and AGENDA ITEM 1 PAGE 4 thereafter from the Lottery Fund CIP 2008 through 2013 budget as outlined in this memorandum and related attachments. Kay Tauscher seconded the motion. VOTE The motion passed unanimously by Board members present. ADJOURNMENT -The meeting adjourned at 8:05 p.m. These minutes were prepcxrecl by Cecil Fenio. APPROVED BY: Bruce Bland Board Chair DATE AGENDA ITEM 1 PAGE 5